Automobile Prospects

The Sherbrooke Telegram
26 October 1944

It is a well known fact that a considerable backlog in the demand for automobiles has developed in Canada. No automobiles have been produced during the war while a large number of cars have had to be withdrawn from the roads. Furthermore, as a result of the sharp increase in purchasing power in the hands of the Canadian people, the prospects is that many persons who never owned automobiles will appear in the market when cars are again available.

If the war in Europe should come to an end in 1944 or in the early part of 1945, about 50 per cent of the total war work in Canada will be cancelled. This will enable the automobile companies to begin to reconvert and, during 1945, they may produce about 100,000 cars. The outlook is that there will be a peak demand for cars in 1945, 1946 and 1947 and that the accumulated demand will not be met until the end of 1949.

A great deal, however, will depend on the prices of cars as well as on business activity and employment. If prices of automobiles should increase sharply, the demand would fall off. However, it is not anticipated that prices will advance sufficiently to curtail the demand to any great extent. Similarly, it is not likely that Canada will witness a prolonged period of business depression after the end of hostilities. In fact, the great demand for automobiles from home and abroad will contribute to the volume of business activity.